The Circular Cai Shui [2017] n.79 has been recently released as a further step, to extend this CIT incentive nationwide effective retroactively from 1 January 2017, it will allow more high-tech and high value-added service enterprises to enjoy the preferential tax policies.

The incentive includes the following:

· Advanced technology service enterprises are subject to enterprise income tax (EIT) at a rate of 15% (the statutory rate being 25%); and

· A deduction applies to employees’ education expenditure (up to 8% of the total salary and wages), provided that certain requirements are met.